Understanding Inflation

What was the primary cause of hyperinflation in Zimbabwe?

• Increased foreign investment

• Low import tariffs

• High export rates

• Excessive printing of money

What happens to the aggregate supply curve during cost-push inflation?

• It shifts to the left

• It shifts to the right

• It remains unchanged

• It becomes vertical

Which of the following is a key factor in demand-pull inflation?

• Decrease in consumer demand

• Increase in production costs

• Government subsidies

• Excessive demand for limited goods

What is the result when aggregate demand shifts to the right?

• Price levels decrease

• Price levels increase

• Supply increases

• Supply decreases

What economic concept is illustrated by the Philips curve?

• The effect of interest rates on savings

• The correlation between GDP and inflation

• The relationship between inflation and unemployment

• The impact of tariffs on trade